{"id":58335,"date":"2021-06-21T07:27:18","date_gmt":"2021-06-21T12:27:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58335"},"modified":"2021-06-21T07:27:18","modified_gmt":"2021-06-21T12:27:18","slug":"shale-oil-and-gas-fraud-a-sign-of-a-peak-in-oil-supplies","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58335","title":{"rendered":"Shale oil and gas fraud: A sign of a peak in oil supplies?"},"content":{"rendered":"

Shale oil and gas fraud: A sign of a peak in oil supplies?<\/a><\/h3>\n
\n

Those of us who watched incredulously\u00a0as investors shovelled more and more money into what we were sure were money-losing shale oil and gas drillers<\/a>\u00a0do not find\u00a0the current spate of fraud lawsuits<\/a>\u00a0against these drillers surprising.<\/p>\n

The gargantuan claims about shale hydrocarbon reserves\u2014which were compared more than once to those in Saudi Arabia\u2014were clearly designed to woo investors into bidding up the stock price and\/or hoovering up the constant stream of junk bonds emitted by the shale oil and gas drillers. The hype succeeded for a long time, even during the crash in oil prices in 2015 and beyond when investors convinced themselves that they were picking up “bargains.”<\/p>\n

It wasn’t until the pandemic-induced plunge in oil prices that the reality of those outlandish claims was revealed, and many companies disappeared.<\/p>\n

<\/a>But this story of fraud and exaggerated claims is much more than a legal story. The large production gains that did take place in American oil fields had people believing America would be or already was “energy-independent,” a phrase that meant the country would not be a net importer of energy resources. Though U.S. dependence on imported energy resources did decline, it didn’t reach zero until the pandemic dramatically crashed U.S. oil demand below U.S. production. But as the world and U.S. economies rebound, that dependence is almost certain to return as the so-called “shale miracle” turns out to be something less than miraculous, bankruptcies continue and reserve estimates come back into line with reality.<\/p>\n

But the fallout extends even further. The U.S. oil boom was the principal source of increased world production for most of the last 15 years.\u00a0Without that boom and the boom in the Canadian tar sands,<\/a> world oil production would have grown little or even declined.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Shale oil and gas fraud: A sign of a peak in oil supplies? Those of us who watched incredulously\u00a0as investors shovelled more and more money into what we were sure were money-losing shale oil and gas drillers\u00a0do not find\u00a0the current spate of fraud lawsuits\u00a0against these drillers surprising. The gargantuan claims about shale hydrocarbon reserves\u2014which were […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[4752,1729,4967,722,723],"class_list":["post-58335","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-kurt-cobb","tag-oil-and-gas-industry","tag-resource-insights","tag-shale-gas","tag-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58335"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58335\/revisions"}],"predecessor-version":[{"id":58336,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58335\/revisions\/58336"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}